USA Fanter awarded $500K in defamation suit against IPI

The U.S. District Court for the NMI has awarded USA Fanter Corp. Ltd. $500,000 in damages after it found that two press releases Imperial Pacific International (CNMI) LLC had issued defamed USA Fanter as a reputable construction contractor.

This comes after U.S. District Court for the NMI Chief Judge Ramona Manglona determined following a trial last month that IPI did indeed defame USA Fanter through press releases that were published in two local newspapers.

“Based on the evidence presented at trial, the court finds that IPI’s two press releases that were published in two CNMI newspapers defamed USA Fanter of its reputation as a reputable construction contractor, having done business in the CNMI for over 30 years, and that defamation caused USA Fanter damage. Accordingly, the clerk shall enter judgment in favor of plaintiff USA Fanter in the amount of $250,000 in general damages and $250,000 in punitive damages for a total judgment amount of $500,000, plus post-judgment interest,” stated the court’s order.

According to the court’s findings of fact and conclusion of law, IPI conceded that its 2019 press releases accusing USA Fanter of lying and inflating fees was defamatory, but contested the damages being sought by USA Fanter.

USA Fanter, a former construction contractor of IPI, sued the casino investor for defamation for making libelous statements in a press release it transmitted to Saipan Tribune and Marianas Variety. 

Attorney Samuel I. Mok filed the lawsuit on behalf of USA Fanter while attorney Colin Murphy Thompson represented the plaintiff during the trial.

According to the 17-page lawsuit filed back in February 2020, the press release issued by IPI was in reference to certain construction work performed by USA Fanter with respect to the VIP wing and exterior work of IPI’s hotel-casino project in Garapan.

Specifically, IPI stated that USA Fanter purportedly lied about the actual construction work performed, issued false reports, forged project quantity numbers, forged a payment, fabricated units of material used, fabricated prices and double-billed for work performed.

“IPI’s statements were false and defamatory and that USA Fanter’s business reputation was adversely affected as a result,” the lawsuit stated.

USA Fanter wanted IPI to make a public retraction, but IPI declined, the lawsuit added.